UKHospitality has welcomed a move to reduce the cost of days out over the summer and urged the UK Government to go further on cutting VAT.
The UK Government has announced it will reduce the rate of VAT to 5% for children’s meals, family admissions to visitor attractions and children’s soft play this summer, with the cut taking effect from 25 June to 1 September.
UKHospitality, which has long campaigned for a cut to VAT for the entire hospitality sector, said the move was recognition from the UK Government that a lower rate of VAT delivers immediate benefits for consumers, businesses and the economy.
It said the VAT cut was a “positive step” for families, and urged the UK Government to now take a “bold step” by cutting VAT for the entire hospitality sector.
Great British Summer Savings will be a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks. The scheme is estimated to cost about £300 million.
Kate Nicholls, Chair of UKHospitality, said:
“It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence.
“A 5% rate of VAT for family admissions to visitor attractions, children’s meals and soft play is a positive step to help families enjoy a great British break this summer.
“If there is scope to further support families by including accommodation in this reduced rate, I would encourage the Chancellor to do so to help tackle one of the biggest costs of a family holiday.
“This should now be viewed by Government as a downpayment on a wider shift to a lower VAT rate for the entire hospitality sector, to bring us in line with Europe. Our biggest competitors benefit from VAT rates that average around 10%, and can be as low as 7%, and the UK is a clear outlier.
“As the Government has recognised today, VAT is the single biggest lever it can pull to lower prices, tackle inflation, drive demand, boost spending, generate growth and create new jobs. I would urge it to be bold and cut VAT for the entire hospitality sector.”
Fiona Eastwood, Chief Executive Officer of Merlin Entertainments, said:
“This is great news for the UK’s visitor economy and for families planning trips this summer. As the season gets underway, this timely move from the Government will make it easier for people to get out, explore and create memorable moments together at destinations across the country.
“Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions. We’re excited to welcome more families to our resort theme parks and immersive experiences for a summer packed with fun, play and lasting memories.”
Paul Kelly, Chief Executive Officer of the British Association of Leisure Parks, Piers and Attractions said:
“This is a very welcome and timely boost for the UK’s visitor attraction sector. It will help make great days out more affordable for families, while giving our members added confidence as they head into the peak summer season. The businesses we represent are at the heart of communities across the country, supporting jobs and local economies, and this measure recognises their importance.
“Our members stand ready to pass on this benefit and deliver brilliant, memorable experiences for visitors of all ages. We look forward to seeing more people enjoying the very best of what the UK has to offer.”
